MROs deploy cutting-edge technologies to fix the most complicated machinery on the planet. However, the back office processes which drive shop floor work are anything but cutting-edge.
MRO back office teams primarily perform repetitive, manual activities – or, at best, they rely on antiquated software likely developed in the ‘90s.
The impact is profound. NASA estimates that 80% of accidents and failures in high-risk industries like A&D derive from human error. When software is poor, it leaves human operators to pick up the slack. The worklife of such operators is a never-ending series of manual tasks – which software should automate.
Because software does not automate these tasks, the result is manual data entry errors. This leads to quality escapes, high scrap rates, high rework rates, large and demotivated back office teams, and more.
The Future of MRO Operations
In the future, Artificial Intelligence (AI) will eliminate manual, repetitive tasks performed by back office teams.
AI is capable of processing a huge quantity of information in a rapid and reliable manner. Unlike human operators, fine-tuned AI tools do not make manual data entry errors. And AI is infinitely scalable – meaning you do not need large teams of task monkeys whose work is to perform the same, repetitive process every day.
AI Contract Review for MROs
Let us take the example of contract review for MROs.
Currently, the process is highly manual:
1) Contract teams will receive an incoming Purchase Order.
2) Over 50% of these Purchase Orders will likely contain improper information from the customer, so the contract team will manually request the customer return the form with more information
3) Once the Purchase Order is received with proper information, a junior contract executive will manually copy and paste the information onto an internal tool – likely a macro-based Excel spreadsheet
4) That executive will then recopy the same information into an ERP system, such as SAP
5) Finally, a manager will receive a Repair Card
6) Around 50% of the time, the information on the Repair Card will not match the Purchase Order due to manual data entry – so, the manager will have to send this all the way back to the junior contract executive for reprocessing
As you can see, there are multiple steps to contract review – all manual and all tedious.
With AI, companies can eliminate steps 2-5. AI can perform the manual data entry instantly – and liaise with the customer if more information is required.
As such, the function of the contract team changes dramatically. Instead of operating as task monkeys – whose goal is to perform hundreds of manual data entry tasks a day – the team can instead focus on high value-add activities.
Such activities include evaluating the contract against ITAR constraints; or working on strategic improvement for contract management; or improving communication with shop floor managers.
Human-AI Relationships
AI changes the nature of human work. When we collaborate with AI, humans take up the role of validators. We manage the automation’s output, rather than performing manual daily tasks.
This is a powerful transition because it unlocks our true value-add. Humans are far superior to AI in terms of high-level creativity and strategic thinking. In contrast, we are far weaker than AI and automation tools in terms of repetitive, manual tasks. That is because computers can execute workflows with infinite scalability, in a consistent way, without making errors.
AI-powered Predictive Maintenance in MROs
MRO facilities are adopting AI-driven predictive maintenance with increasing frequency. This is a significant leap from traditional, reactive methods to organisational improvement. With AI, MROs use a combination of sensor data and historical maintenance records to foresee potential breakdowns, turning random error into predictable and understandable cycles.
– Workflow Optimisation: AI algorithms analyse historical data and current inputs to predict administrative needs and schedule them efficiently, avoiding bottlenecks.
– Proactive Task Management: Shifting from a reactive to a proactive approach in back-office operations reduces the dependency on crisis management, enhancing overall workflow efficiency.
– Reduced Operational Costs: AI-driven automation minimises the need for manual input and oversight, thereby reducing labour costs and the risk of costly errors.
– Enhanced Decision Making: Advanced analytics provide back-office teams with actionable insights, enabling them to make informed decisions swiftly and accurately.
– Increased Productivity: Automating routine and repetitive tasks allows back-office personnel to focus on more strategic activities, boosting both individual and organisational productivity.
Enhancing Quality Control through AI in MRO Operations
Quality control within MRO operations is undergoing a revolution, propelled by the integration of AI technologies. These advancements are not only enhancing the precision of inspections but are also reshaping the entire quality assessment process.
– Elimination of Manual Data Entry Errors: AI systems automate data input, driving Zero Human Error output
– Prevention of Quality Escapes: AI’s predictive capabilities enable early detection of potential faults, maintaining operational standards.
– Reduced Operating Time: AI analysis and action decreases the time spent on back office tasks by up to 85%, spearheading greater efficiency.
AI therefore enables MRO facilities to improve their operational efficiency, and set new standards of excellence.
George Bradshaw, Founder and CEO of Carnegie Aerospace
